Re-activated in 1935 at Kelly Field, Texas as a light observation Squadron and supported Army forces at Fort Sam Houston as part of the Air Corps Advanced Flying School.

Also had a number of Northrop A-17s, and with these conducted its first six-aircraft night formation flight across the Isthmus to Albrook Field, then up the Pacific coast to Aguadulce Army Airfield.

In August, 1940, the Squadron started participating in the then-weekly tactical problems laid on by the 19th Composite Wing and, during one of these, acted as a scouting screen out to sea to "intercept" an expected in-coming flight of "enemy" bombers heading for the Panama Canal.

On 25 June 1943, the character of the unit changed significantly when it was redesignated as the 39th Reconnaissance Squadron and was assigned five Bell P-39N Airacobras.

This article incorporates public domain material from the Air Force Historical Research Agency